Bitcoin: the SEC’s ETF Decision Caps Price Gains

Bitcoin: the SEC’s ETF Decision Caps Price Gains

Bitcoin: the SEC’s ETF Decision Caps Price Gains

$BTCUSD

The US Securities and Exchange Commission (SEC) Wednesday rejected applications for 9 Bitcoin-based ETFs (exchange-traded funds) from 3 separate companies, stay tuned…

Bitcoin’s (BTC) spiked to a 15-day high Wednesday, but caution ahead of the US Securities Exchange Commission’s (SEC) comming decision on a Bitcoin exchange-traded fund (ETF) could limit further gainers for the world’s #1 cryptocurrency

The leading cryptocurrency rose to 6,899 on Bitfinex early Wednesday the highest level since 7 August, and is accompanied by a 10% fall in the BTC/USD shorts.

BTC’s convincing move above 6,600 perhaps marks a breakout its range and signal continuation of the rally off of the 14 August lows at 5,859, opening the way for a move at the Psych resistance: 7,000.

Investors are cautious ahead of the SEC’s ruling on whether to allow ETFs.

4-hour chart

The Northside break of the diamond pattern seen in the chart above looks like a Bearish-to-Bullish trend change, that is, the sell-off from the July high of 8,507 has ended and the Bulls regained control.

RSI is holding above 50.00 in favor of the Bulls.

Meanwhile, the 50-Day MA is beginning to rise in a Bull-friendly manner and could soon cut the 100-Day MA from below: The Bull Cross.

Daily chart

BTC’s rise to 6,899 validates the Bullish crossover between the 5 and 10-Day MAs and the upward sloping RSI.

It appears the charts are aligning in favor of the Bulls, Bitcoin has already retraced close to 50% of the gains seen Wednesday, possibly validating the skepticism around Wednesday’s rally.

The retrace 6,670 also marks a failure to hold on to gains above the key resistance at 6,870 at 38.2% Fibonacci retracement of the sell-off from 8,507 to 5,859.

But hang on Bitcoin is currently trading 6,413.91,+47.78, or +0.7505%, as of 6:07a BST, the market is open

Outlook

  • Bitcoin’s Bullish breakout has proved to be lacking in staying power. Acceptance and a hold above 6,870, the Fibo resistance could boost the odds of a rally to 7,000.
  • On the Southside, a move below 6,230 would shift risk in favor of a fall below 6,000.
  • The SEC’s decision on the Bitcoin ETF could send prices North or South, so the market will trade cautiously.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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